U.S. stocks retreated on Friday as investors continued to rotate out of technology shares and into value-oriented sectors.
The S&P 500 declined 1.07% to close at 6,827.41, while the Nasdaq Composite slid 1.69% to 23,195.17. The Dow Jones Industrial Average fell 245.96 points, or 0.51%, to 48,458.05, despite touching a fresh intraday record earlier in the session. The Russell 2000 dropped 1.51% to 2,551.46, though it also reached a new all-time high during the day.
Losses were led by technology stocks, with Broadcom plunging more than 11%. The sharp decline came despite the company beating fourth-quarter earnings expectations and issuing a strong outlook, including a forecast that artificial intelligence chip sales could double, as some analysts pointed to concerns over margin pressure.
Other AI-linked names, including AMD, Palantir Technologies and Micron, also moved lower. In contrast, sectors such as financials, health care and industrials saw modest gains. Shares of Visa, Mastercard, UnitedHealth Group and GE Aerospace were among the session’s outperformers.
Friday’s moves extended a broader market rotation, as investors continued to take profits in growth and AI-related stocks while shifting toward cyclical sectors that tend to benefit from economic strength. The shift follows the Federal Reserve’s third interest-rate cut of the year, announced on Wednesday.
The Dow had closed at a record in the previous session, lifted by gains in stocks such as Visa, UnitedHealth and Nike. The S&P 500 also finished at a new closing high on Thursday, while the Nasdaq lagged as heavyweight technology names including Alphabet and Nvidia declined.
For the week, the S&P 500 and Nasdaq posted losses of 0.6% and 1.6%, respectively. The Dow, however, gained 1.1%. Small-cap stocks outperformed larger peers, with the Russell 2000 rising 1.2% for the week after reaching new intraday and closing records on Thursday.
